In order to give opportunity to the defaulting companies and to enable them to file the belated documents in the MCA-21 registry, the Central Government in exercise of powers conferred under section 460 read with section 403 of the Companies Act, 2013 has decided to introduce a scheme namely “Companies Fresh Start Scheme, 2020 (CFSS-2020)” condoning the delay in filing document, return, statement etc. with the Registrar, insofar as it relates to charging additional fees and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings. Only normal fees for filing of documents in the MCA-21 registry will be payable in such case during the tenure of CFSS-2020 as per the provisions of section 403 read with Companies (Registration Offices and Fee) Rules, 2014 and section 460 of the Act.
However, this scheme shall not apply:
- To companies against which action for final notice for striking off the name u/s 248 of the Act (previously section 560 of Companies Act, 1956) has already been initiated by the designated authority;
- Where any application has already been filed by the companies for action of striking off the name of the company from the register of companies;
- To companies which have amalgamated under a scheme of arrangement or compromise under the Act;
- Where applications have already been filed for obtaining Dormant status under section 455 of the Act before this scheme;
- To vanishing companies;
- Where any increase in authorized capital is involved (Form SH-7) and also charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9)
The Companies may seek immunity in respect of belated documents filed under this scheme by filing form CFSS-2020 electronically without any fee after the closure of scheme but not after the expiry of six months from the date of closure of this scheme.
Provided that this immunity shall not be applicable in the matter of any appeal pending before the court of law and in case of management disputes of the Company pending before any court of law or tribunal.
Provided also that no immunity shall be provided in case any court has ordered conviction in any matter, or an order imposing penalty has been passed by an adjudicating authority under the Act, and no appeal has been preferred against such orders of the court or of the adjudicating authority, as the case may be, before this scheme has come into force.
[Source: General Circular No. 12/2020 dated 30th March, 2020]
